The round also saw the participation of JITO Angel Network and Mumbai-based funding and incubation platform Venture Catalysts.

According to a press note by Venture Catalysts, five angels, including Sunidhi Securities and Finance Ltd managing director Jayesh Parekh; Narnolia Capital’s Pankaj Harlalka; Gaurav Gandhi; Nikunj Pachisia; and Vijay Lakhani, led the investment on its behalf.

The capital will be used to ramp up ONN Bikes’ technology base, increase its fleet size, and help it expand its footprint in other geographies, besides funding its promotional activities for its franchisee model.

In December 2016, the startup had raised seed money from Z Nation Lab and Grace Capital Ventures.

“The advent of the sharing economy in India and the rise of bike rentals in China are positive signs for this segment in India. This is the right time for the bike rental market,” said Piyush Mehta, lead investor for JITO angels.

ONN Bikes, which was founded in 2015 by Shanky Munoth and Namit Jain, and started its operations in May 2016, operates an app- and website-based online platform for renting out two wheelers on a daily, weekly and monthly basis. It counts Uber, Ola and Swiggy as its customers.

According to the company website, it also offers tour packages, exclusive bike merchandise, as well as refurbishing and maintenance, across Delhi, Mumbai, Bengaluru, Kolkata, Mysuru, Lucknow, Raipur and Surat. Besides, it has partnered with local businesses to run franchisee outlets.

ONN Bikes CEO Jain, a chartered accountant, had stints in PricewaterhouseCoopers, while Munoth, the CTO, is a former Infosys executive.

Of late, several two-wheeler rental startups have set up shop, and the segment has witnessed considerable investor interest.

Last month, it had invested $500,000 in energy drinks startup FYRE, which is operated by Mumbai-based Triquetrus Essentials Pvt. Ltd, besides infusing an undisclosed sum in fintech startup HomeCapital, which provides down payment capital to first-time home buyers.